Educated Unemployed and Employment Preferential
Differentials of Educated: Evidences from Field
Kumar Yogesh
Institute of Applied Manpower Research
E-mail: yogesh.vaish@gmail.com
Abstract
The developing countries face peculiar problems which include growing magnitude of educated
unemployed. Present study examines the structure and nature of educated unemployed in India, The
study to analyze unemployment amongst various education levels, as also employment in non-farm
sector of educated and gendered effects in occupational structure of employment. The study envisages
the scope of further employment in non-farm sectors of these populace groups. It is observed that a
good number of illiterates, those educated up to middle, and even those educated beyond secondary
level resort to doing agricultural and allied activities. Nonetheless, the percentage engaged in
agricultural and allied jobs reduces substantially as the education level goes up from ‘uneducated’ to
that of ‘secondary and more educated’ levels. The participation of females is more or less limited to
low paid casual type.
Keywords: Educated unemployed its structure and nature, Education levels, Non-farm sectors,
agriculture and allied activities
1. Background
The problem of unemployment has become one of the major concerns of many countries of the World.
World Employment Review (1999) by ILO notes that employment situation in the world remains grim
and the employment conditions in many parts of the world have deteriorated in recent past. The
developing countries like India face some peculiar problems which include wage-insecurity, low
productive employment, job-less growth and expanding magnitude of educated unemployed. Post
liberalization particularly, as the organized sector, the major employer of educated persons, not growing
adequately, the immediate impact is felt on the employment generation capacity of the economy.
Moreover, the manufacturing sector witnessed the sharpest deceleration. Deceleration in the rate of
employment growth is sharper in recent years.
The reasons for the high incidence of educated as elaborated by Khan (1996) has been "a long
consensus in India regarding education and its pro-growth ramifications ensured the availability of
educated manpower in the economy but also resulting into serious problems of educated unemployed,
and their number swelling." The problem of unemployment among educated is twofold. Firstly, they
are unemployed because of scarcity of jobs in the job market but there is also unemployment because
educated unemployed are not generally willing to take up the jobs which are of poor quality as quoted
by Mehta (1992). Education may enhance employability of individuals but also generates aspirations.
The paper marks the changes witnessed in the rural areas of agriculturally advanced state of Haryana.
1.1 Objectives
Present study, therefore, aims to deal with the various problems related to the educated prevailing on
fronts of employment (i.e. participation in enumeratory engagements) and unemployment in the labour
market. It is also aimed to study the deprivations resulting thereof to the higher educated workforce in
the economy in terms of income and employment opportunities, and rising aspirations with education
levels. It would also be endeavored to go beyond the statistical figures and read in between the figures
about the untold situations. The study aims to utilize the micro-level database generated in the state of
Haryana encompassing the following aspects. (Note 2)
•

The study posits that the diversification to the non-farm employment as well as nature of non-farm
occupation pursued at the household level is a function of education levels. In the process of testing the
hypothesis, the study attempts to answer the following questions:
•

What percentage of higher educated workforce as against low educated workforce
diversifies to non-farm employment?

•

What is the pattern of occupational diversification of the higher educated workforce
as against lower educated workforce pursuing non-farm employment?

•

With changing educational level, what is the impact on tendency of diversification of
males’ vis-à-vis females? And

•

How does with educational level changes, pattern of occupational diversification
vary among genders?

2. The Case Region
Secondary NSS data indicates some interesting features about the changing employment scenario of the
state of Haryana, the chosen case region for carrying out above the study. These features of the state
further reiterate the need for the economic and employment planners and policy makers to heed their
attention to fast deteriorating employment scenario in the
What was found was that not only the participation rates of Haryana vis-à-vis the country as a whole in
the rural areas was much less but the situation was getting worsened during NSS 50th to 55th round. In
the context, it needs to be noted that Labour Bureau Statistics (Note 1) revealed that earner -population
ratio was lowest in Haryana amongst all major states during 1983 and 1987-88. The situation
deteriorated further in 1993-94. Insofar as LFPR and WPR are concerned, both remained less than allIndia average by about 10 percentage points in 1993-94. The participation rate declined further in the
state in 1999-2000 over that of 1993-94 and in case of females it was by about 7 per cent. (Note 2)
3. Data Base
For the purpose of the present study, no separate survey was conducted. It was decided to make use of
the information already collected by the Institute of Applied Manpower Research for developing
Human Development Index (HDI) for the State of Haryana. In addition to this, information was
collected on many other related aspects, which were not used in the preparation of HDI. A separate
study exclusively designed for finding out the tendencies of employment and resultant unemployment
for different levels of education by males, females and overall, as well the aspirations of these with
changing education levels would have been worthwhile but because of the cost and time involved for
such a study, the available information, although limited in certain respects was utilized. It was felt that
the analysis would throw at least a picture of indicative nature.
4. General Findings
4.1 Educational Status of the Population
As the statement goes, "A poor human capital base of India's rural economy is indeed its Achilles'
heel". Educational level of the population differs vastly. There are differences between males and
females, as also between youth and others. Amongst 15+ males, almost 39 per cent are in secondary
level and above, and almost equal number consists of up to middle level and only a little less than 23
per cent are illiterate. The highest percentage in case of 15+ females is that of illiterate (53.5 per cent),
and only about 17 per cent are secondary and above. So far as youth population is concerned, 52 per
cent males are educated up to secondary level or more and only about 8.9 per cent are illiterate; while
amongst females, about a third are secondary and above, 27.1 per cent are illiterate and 39.6 are middle
(Table 1)
5.0 General Findings
5.1 Educational Status of the Population
As the statement goes, "A poor human capital base of India's rural economy is indeed its Achilles'
heel". Educational level of the population differs vastly. There are differences between males and
females, as also between youth and others. Amongst 15+ males, almost 39 per cent are in secondary

level and above, and almost equal number consists of up to middle level and only a little less than 23
per cent are illiterate. The highest percentage in case of 15+ females is that of illiterate (53.5 per cent),
and only about 17 per cent are secondary and above. So far as youth population is concerned, 52 per
cent males are educated up to secondary level or more and only about 8.9 per cent are illiterate; while
amongst females, about a third are secondary and above, 27.1 per cent are illiterate and 39.6 are
middle (Table 1)
5.2 Labour Force Participation Rates (LFPR)
It is found that a large proportion of educated population amongst youth secondary and more educated
in particular in the state is neither engaged nor willing to be engaged in economic activities. Whereas
about 53 per cent of secondary and more educated in 15+ age-groups are aspiring for employment, only
about 35 per cent of the youth (age-group 15-29) secondary and more educated are in this list.1 Among
‘up to middle’ also as against 54.27 per cent in 15+ age-groups aspiring for employment, only about
41.5 per cent of the youth lie in the category. The corresponding percentages for illiterates have been
36.88 and 36.44 for 15+ and youths respectively (Table 2).
5.3 Workforce Participation Rate (WPR)
Similarly, whereas about 48.54 per cent of secondary and more educated in 15+ age-groups are
employed, only about 28.44 per cent of the youth (age-group 15-29) secondary and more educated are
in this list. 2 Among ‘up to middle’ also as against 51.77 per cent in 15+ age-groups aspiring for
employment, only about 36.57 per cent of the youth lie in the category. The corresponding percentages
for illiterates have been 36.17and 34.43 for 15+ and youths respectively (Table 2).
5.4 Gender Differentials in Educational Levels
Amongst 15+ males, almost 39 per cent are in secondary level and above, and almost equal number
consists of up to middle level and only a little less than 23 per cent are illiterate; amongst 15+ females,
an overwhelmingly 53.5 per cent are illiterate and only about 17 per cent are secondary and above. So
far as youth population is concerned, 52 per cent males are educated up to secondary level or more and
only about 8.9 per cent are illiterate; while for female population only about a third are in secondary
level and above, 27.1 per cent are illiterate and 39.6 are up to middle level (Table 3)..
5.5 Educated Vs Uneducated LFPR Differentials in case of Males and Females
Labour force participation is highest amongst ‘middle educated’ male followed by the ‘Illiterate males.
Only about two third males with ‘secondary level and above’ aspire for employment. So far as females
are concerned, labour force participation rate is very low for all the three categories. Illiterates followed
by and ‘secondary level and above’ followed by ‘Middle educated’ amongst females aspire to be in
labour force.
There is a slump witnessed in case of males as well as females (Table 5) LFPR which is still sharper as
educational levels rise. Labour force participation is amongst illiterate male youth remaining almost
same as is labour force participation in 15+males, but where as LFPR in case of ‘middle educated’.
goes down from 80.38 for overall males to 64.15 for youth males (LFPR being three fourth times for
youth males as compared to overall males) , LFPR amongst ‘secondary level and above’ male falls
from 67.82 for overall males to 48.09 for youth males (LFPR being 2/3rd for youth males as compared
to overall males). So far as LFPR among female youths is concerned, the rate has been found to be
1

The labour force consists of those who offer themselves for the economic activities fetching
income/ wages in cash, kind etc. They are either economically active or seeking employment.

2

The labour force consists of those who offer themselves for the economic activities fetching
income/ wages in cash, kind etc. They are either economically active or seeking employment.

higher among illiterate youths compared to overall females, and is almost similar for ‘middle
educated’ , amongst ‘secondary level and above’ there is decline (LFPR being 2/3rd for youth females
as compared to overall females).
The majority of labour force amongst 15+ males is educated (41.3 percent ‘up to middle’, and 35.1 per
cent ‘secondary or more’). Similarly about 90 per cent of labour force amongst 15+ females is educated
(44.2 percent ‘up to middle’, and 44.0 per cent secondary or more).
But a contrasting scenario is perceptible amongst youths (Table 6). So far as educational level of the
labour force is concerned, only little more than 23 per cent female labour force are in the secondary
level and above, but almost two-fifths are still illiterate. In case of males, the percentage of illiterate is
about 11.7, and only about 44 per cent are in the ‘secondary level and above’. Thus, the state suffers in
general from a poor human capital base. However, almost three-fifths of the female labour force still
consists of illiterates. Only one out of six is in the category of ‘secondary level and above’.
The above discriminations in the economic participation rates and educational levels require closer
examinations as they just are not the isolated cases of the discriminatory characteristics of the society
but are vital factors as the two aspects are quite correlated and are catalytic to one another’s further
discriminations.
5.6 Education and Employment Diversification Tendencies
Education level wise analysis indicates that not only a good number of illiterates or those educated up
to middle, but also those educated secondary level and above resort to doing agricultural and allied
activities. Nonetheless, the percentage of workers engaged in agricultural or allied jobs gets reduced
substantially as the education level goes up from ‘uneducated levels’ to that of ‘secondary and more
educated’ levels. This reduction has been from about 58 percent to 46 percent in case of males 15+,
about 58 percent to 26 percent in case of females 15+, and about 59 percent to 33 percent in case of
female youths. Only in case of male youths, there is a marginal reduction from about 53 percent to 50
percent (refer Table 7).
Though the percentage of people taking up non-farm activities does not increase magnificently with
educational levels, it is found that the nature of employment does vary with levels of education (Table
8).
So far as any diversification is concerned, it is found (refer table below) that while Illiterates main
occupation is generally ‘non-agricultural wage labour’ (about 25-27 percent for 15+ and about 30-35
per cent for youth), ‘up to middle educated’ have tendency to take up either artisan/independent work’
(about 7 to 9 percent for 15+ as well as for youth) or again ‘non-agricultural wage labour’ (about 20 28 percent for 15+ as well as for youth). The pattern of male and female employment amongst
‘illiterates’ and ‘up to middle educated’ does not find any major diversification patterns.
‘Secondary and more educated’, on the other hand, reveal that there is a significant proportion of
workforce opts for ‘salaried employment’. This is found that amongst males about 29-36 percent for
15+ as well as for youth opts for ‘salaried employment’ A diversion from males is observed distinctly
in case of females 15+ ‘secondary and more educated’. In their case it is found that as high as 54 per
cent opt for ‘salaried employment’. In this education category, only much less females opt for ‘nonagricultural wage labour’ (about 7 percent as against 9 percent in case of males 15+, and 10 percent as
against 12 percent in case of males’ youth).
5.7 Scope of further employment in non-farm sectors of the persons
So far as scope of labour force in non-farm sectors is concerned, as sector-wise information is not
available in greater depths, an attempt has been made to look into the status of employed workforce
declassified into agricultural (and allied) employment as against non-agricultural (and non-agriculture
allied) employment. This two-way classification of the employed should provide a broad idea about the
availability of non-farm opportunities for the workforce in the economy. Table 7 indicates that the
workforce is more or less evenly distributed between agricultural and non-agricultural sectors,

irrespective of their gender class, or age groups (youth and non-youth). Yet males have a slight edge in
agricultural pursuits over the females, who lead in non-agricultural engagements.
A further analysis provides a clearer picture of switching over to non-agricultural pursuits educational
level changes. This also signifies the scope and tendencies of employment of the different people
falling in different categories of education. To determine the potential of an activity providing
employment to a larger workforce suitably, there were certain assumptions made by the author. An
activity was assumed to have a significant role in future in employing people if as on date at least 5 per
cent 3 of employed people pursue a particular economic activity which means a minimum of 5 per cent
are employed in that activity. This was assumed so for all the different classes of population, i.e., males
and females, youth, and overall 15+ populations. It is found that with higher education, the scope of
economic activity gets widened for the people. While in the case of illiterates most predominant
activity other than primary activities has been the non-agricultural wage labour. The other activity
providing scope for illiterates is artisan or independent work for males; and own or household work for
females. While up to middle educated males have scope in non-agricultural wage labour, artisan or
independent work, and petty shop/ other small business, females have scope in non-agricultural wage
labour, artisan or independent work and salaried employment. Persons with secondary level and above
have rather four options. The most predominant activity in their case is salaried employment, followed
by non-agricultural wage labour , artisan or independent work and petty shop and small business.
Thus, there is a significant differential found between educational levels, i.e., people with different
levels of education donot pursue all sorts of non-agricultural jobs equivocally. As the education level
improves, there are a significant number of persons pursuing activities atypically of non-casual nature.
Many of the secondary and above educated were looking for themselves salaried, i.e., more regular
type of employments. The tendency was more evident in case of secondary and above educated
females.
6.0 Conclusions: Educational Levels and Employment Correlates
•

The participation rate in the economic activities is found to be higher amongst the illiterates.
But this has been more so in case of females. As against 74.81 percent of overall 15+ male’s
population joining labour force, 77.29 percent of illiterate population join the labour force.
While about 23.1 percent of the total 15+ males population comprise of the illiterates, among
those joining labour force, illiterates constitute about 23.6 per cent. In case of females, as
against 15.84 percent of overall 15+ population joining labour force, 16.79 percent of illiterate
15+ populations join the labour force. The difference between the illiterates percentage of the
total population and of the total labour force is quite perceptible as is revealed from the fact
that while illiterates percentage is about 53.4 percent in the 15+ populations, their percentage
among the labour force is 56.7 per cent.
• The different economists find different consequences of the increase in educational level on
employment prospects. It is found that not only a good number of illiterates or those educated
up to middle, but also those educated secondary level and above resort to doing agricultural
and allied activities. Nonetheless, the percentage of workers engaged in agricultural or allied
jobs gets reduced substantially as the education level goes up from ‘uneducated levels’ to that
of ‘secondary and more educated’ levels.
However, the reduction graph is much steeper in case of females than males. While the reduction has
been from about 58 percent to 46 percent working in agriculture and allied activities in case of males
15+, as the education level goes up from ‘uneducated levels’ to that of ‘secondary and more educated’
levels, the reduction is much sharper in case of females 15+ (from about 58 percent to 26 percent).
The differential in reduction of agricultural and allied pursuits carried out is still more eminent in case
of youth workforce. While the reduction in case of female youths pursuing agricultural and allied jobs
is found to be from about 59 percent of ‘uneducated levels’ to 33 percent in case of ‘secondary and
3
Instead of bothering about other aspects of diversification - such as migration, versatility of employment
options available, and strength ( in terms of providing employment to a large percentage of workforce) of the other
(non-farm) sectors , it is endeavoured to just make an assessment of these activities by arbitrarily assuming the
presence and significance of these activities if a minimum of 5 per cent of the workforce are engaged in it.

more educated’ employed female youths; in case of male youths, the reduction is only marginal from
about 53 percent to 50 percent.
•

•

•

The economic participation of females is more of low paid casual/ conventional type. As most
of the female workers are illiterates, and very few educated up to middle, a look into the
structure of employment in the two classes for males and females would highlight the
employment differential prevailing between genders (as about 84.5 per cent of females have
education 'up to middle'). It is found from the primary data analysis that while illiterates
males mostly carry out activities such as artisan (or independent) work other than primary
activities, females carryout household works. So far as persons having education up to middle
level is concerned, males pursue activities such as non-agricultural wage labour, artisan or
independent work, and petty shop/ other small business, while females are mostly engaged in
non-agricultural wage labour, artisan or independent work and salaried employment.
‘Secondary and more educated’ levels where there is found a diversion from conventional
agricultural, agricultural allied and other informal or unorganized labour employment
practices. ‘Illiterates’ and ‘up to middle educated’ male and female do not indicate any major
diversification patterns. It is remarkable to find that even ‘Secondary and more educated’
levels, while amongst 15+ as well as youth males, only about 29-36 percent opt for ‘salaried
employment’ in case of females 15+ , as high as 54 per cent opt for ‘salaried employment’.
With higher education, the range and nature of economic activity gets widened and of higher
order. As the education level improves, there are a significant number of persons pursuing
activities atypically of non-casual nature. Many of the ‘secondary and above educated’ look
for salaried, i.e., more regular type of employments. The tendency was more evident in case of
secondary and above educated females

Table 9: Classification of Employed into Agricultural and Non-agricultural Workers
Level of Education
Workers
Agricultural and Allied
Non-agricultural
15+
15-29
15+
15-29
M
F
M
F
M
F
M
F
Illiterate
57.86 57.77
52.87
58.62
42.14
42.23
47.13
41.38
Upto Middle
54.40 44.50
50.09
47.71
45.60
55.50
49.91
52.29
Secondary and Above
45.85 26.02
49.90
33.33
54.15
73.98
50.10
66.67
Notes
Note 1. Labour Bureau, â&#x20AC;&#x2DC;Rural Labour Enquiry Reports 1983, 1987-88, 1993-94â&#x20AC;&#x2122;. In the state it was
just 43.6 per cent in 1983, and only 48.3 per cent in 1987-88. As compared, all-India ratios for the two
periods were 54.5 and 54.6 respectively. Similarly in case of females too, the corresponding EarnerPopulation Ratios for the two periods (1983 and 1987) in the state were merely 21.4 and 9.6 compared
with all-India figures of 32.5 and 30.7
Note 2. In the absence of gender-wise details, the deteriorating situation can be understood from the
fact that whereas overall Earner Population Ratio in 1983 was 33.6, it came down to 30.0 in 1987-88
and further to 27.9 in 1993-94.
Note 3. Mukhopadhyaya, S (1981) finds, in particular, women receiving discriminatory treatment from
employers.
Note 4. Papola T.S. (1982) finds that women too receive unequal treatments by employers on the
pretext of unsuitable for certain kinds of jobs.
Note 5. Studies by Freeman, R.B. (1973) and Kain J.F. (1969) point out discrimination in labour market
occurring due to emergence of some dominant groups.
Note 6. The Neo-classical theories of discrimination highlight that the discrimination in the labour
market is practiced by employers on some rational basis